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The following income statement is for X Company's two products, A and B: Product A Product B Revenue $85,000 $93,000 Total variable costs 50,150 53,940

The following income statement is for X Company's two products, A and B:

Product A Product B
Revenue $85,000 $93,000
Total variable costs 50,150 53,940
Total contribution margin $34,850 $39,060
Total fixed costs
Avoidable 31,618 16,949
Unavoidable 24,842 15,031
Profit $-21,610 $7,080

If X Company drops Product A because it shows a loss and is able to use the vacant space to increase sales of Product B by $36,600, with $3,000 of additional fixed costs, what will be the effect on firm profits?

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